Great decision-making processes, and therefore great governance, have a positive effect on individual property values, collective asset equity gain and the living standards of all lot owners.
The 7 elements of great governance every Owners' Corporation must know.
Great governance is about the informed creation and adherence to strata by-laws as well as efficient and effective meeting procedures. It also demands high expectations of management service, role clarification, and good working relationships between owners corporation members, strata managers and contractors.
Here are 7 elements every Owners Corporation must know.
Great governance is accountable
Accountability is the fundamental requirement of great governance. Owners corporation executive committees have an obligation to report, explain and be answerable for the consequences of decisions they have made on behalf of the community they represent.
Experienced strata managerscan assist executive committees with complex yet crucial decisions in order to protect the community's collective asset.
Great governance is transparent
All lot owners must be able to follow and understand the decision-making process and actions taken to proceed. This means they will be able to clearly see how and why a decision was made - what information, advice and consultation the committee considered, and which bylaws were referenced or expert advice on enhancement, maintenance and protection were accepted.
Great governance follows bylaws
This means decisions are consistent with relevant legislation or common law. An experienced strata manager can guide owners corporations on bylaw compliance but a working knowledge of them assists with good governance.
Great governance is responsive
Owners Corporation executive committees should always try to serve the needs of the entire community within the strata scheme in a timely, appropriate and responsive manner. Their choice of and working relationship with an experienced strata manager is a key element.
Great governance is equitable and inclusive
A community's well being results from all of its members believing their interests have been considered by Owners Corporation executive committees and their strata manager in the decision-making process.
This means all lot owners should be encouraged to participate in the process and implications for their failure to do so should be outlined upfront.
Great governance is effective and efficient
Owners Corporations, focused on creating harmonious living or commercial environments while enhancing, protecting and maintaining their collective asset, should implement decisions and follow processes that make the best use of the available resources and time to ensure the best possible results for all lot owners .
Great governance is participatory
Anyone affected by or interested in a decision should have the opportunity to participate in the process for making that owners corporation decision. This can happen in several ways - lot owners may be provided with information, asked for their opinion, given the opportunity to make recommendations and be part of the decision-making process.